General Motors has strategically extended its decades-long joint venture agreement with Chinese automaker SAIC Motor until 2047. The decision, which comes after a prolonged period of restructuring and reorganization in the Chinese market—including factory closures and the discontinuation of certain models—underscores the American automaker’s determination to maintain its presence in the world’s largest automotive market. Under the 50-50 joint venture agreement, the primary focus will be on developing products that better match the preferences of Chinese consumers.

As part of the restructuring, General Motors announced that it will focus its operations in China on the Cadillac and Buick brands and discontinue Chevrolet sales in the country. However, the company plans to use its Chinese manufacturing capacity as a strategic export hub for Buick and Cadillac vehicles to markets in the Middle East, Africa, South America, Mexico and other parts of Asia.

Meanwhile, the production and export of Chevrolet vehicles will be managed through separate joint ventures with SAIC and Wuling. The company has emphasized that these products are not intended for the U.S. market, as U.S. tariffs and national security policies restrict the entry of technologies developed in China into the United States.

The extension of the agreement comes as General Motors has faced a significant deterioration in its performance in China over the past year. Its sales have fallen by approximately 51 percent compared with 2016, while the Chevrolet brand has suffered losses due to competition from lower-priced rivals. Although the automaker went from generating around $2 billion in annual profits in China in the early 2020s to posting losses, it has returned to profitability following its restructuring, recording $83 million in earnings in the second quarter of this year.